Hal_Al
Level 15

Education

@drjoe66 

You do not enter your dependent's income on your return.  If it has to be reported , it gets entered on her return.

The trouble with the above described way is that it is treated as unearned income, which limits the dependent's standard deduction to $1100.  So, you may be better off entering it as self employment. 

 

But if it's truly not self employment, there's third way.

Federal Taxes Tab

-Wages and income

Scroll down to:

--less common income

---Misc Income, 1099-A, 1099-C..... (Press start)

-----Select START (or update) to the 1st choice  titled "Other Income not reported on a W-2....." and Continue

-------Select YES to other wages received  and Continue

----------Select CONTINUE on the "Wages earned as a Household Employee" screen (enter nothing here)

--------------Select CONTINUE on the "Sick or Disability Pay" screen (enter nothing here)

-----------------Select "Yes" on the "Any Other Earned Income" screen and continue

----------------------Select "Other" on the "Enter Source of Other Earned Income" and Continue

--------------------------In Description Box type "Stipend" and the amount. Click Done.

That puts the income on line 1 of form 1040, where it is treated as earned income. 

Note: income on line 1 of form 1040 without a W-2 or line 1 code is a small red flag at the IRS

 

If she worked for a college or non profit  instead of a company, the income could be entered as taxable scholarship. Enter it in the educational expenses section, rathe than the income section of TurboTax.  This still puts it on line 1 of form 1040, but with the "SCH"code.